The Jerusalem municipality has announced it has reached an agreement with Israel's territorial authority to build more than 20,000 settlement units in the illegal settlement of Maale Adumim.

This settlement project will be launched after the approval of the Israeli government and will include schools, kindergartens, public centers and sports halls.

The project will build 12,600 new housing units and another 8,000 to be integrated into urban renewal initiatives in existing structures.

Nearly 1.4 billion shekels (335 million euros) will be injected into infrastructure and public spaces, among other projects.

The Israel Lands Administration will invest 600 million shekels (142 million euros), and 800 million shekels will be collected from the royalties and tax levies generated by the sale of the apartments, according to the agreement.

"This is a historic day for construction in Jerusalem, and an important day for its future," Jerusalem Mayor Nir Barkat said in a statement.

The works will be concentrated in the areas at the entrance of the city, along Begin Boulevard, Givat Ram neighborhoods, Kiryat HaYovel, Har Hotzvim in the western part of the city.

Israeli Construction Minister Yoav Galant said the project will lead to Maale Adumim's development and population growth significantly.

He added the belief in the need to strengthen control in some areas of the country, such as Jerusalem, as well as maintain full control over the West Bank, including the Jordan Valley and promote settlement in these territories.